The Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020 (the Bill) has progressed through Dáil Éireann and will now go through Seanad Éireann before it can be signed into law by the President.
We previously examined the impact of the General Scheme of the Bill (the General Scheme) on the Insurance industry in our article here.
Part 10 of the Bill is largely similar to the provisions of Part 10 of the General Scheme. Section 81 of the General Scheme, which concerns reporting to the Minister of Finance by the Central Bank of Ireland (CBI), has been developed in the Bill.
Section 81 obliges the CBI to submit a report to the Minister for Finance between the eleventh and twelfth anniversary of the date on which Part 10 of the Bill as enacted (Part 10) comes into operation. The report must set out the CBI’s views on the operation of the provisions of the Bill inserted by Part 10 into the EU (Insurance and Reinsurance) Regulations 2015 and the EU (Insurance Distribution) Regulations 2018. The report must include the CBI’s view on the:
- continuing need to protect holders of insurance policies issued by active insurance run-off undertakings or administered or performed by active insurance distribution run-off undertakings;
- number of active insurance run-off undertakings and active insurance distribution run-off undertakings; and
- classes of insurance to which the policies referred to in paragraph (a) relate.
Helpfully, the Bill now provides a definition of an “active insurance run-off undertaking” and “active insurance distribution run-off undertaking” for the purposes of the CBI’s report under Section 81.
The Bill has passed through all stages in Dáil Éireann and now must pass through Seanad Éireann, beginning at the second stage, before it can be signed into law by the President before the end of the UK’s transition period at 11p.m. on 31 December 2020.
We will continue to monitor the developments in this area.
If you would like to know more about the services we offer or have any questions on the Bill, please contact our Insurance team or your usual contact at William Fry.
Follow us on @WilliamFryLaw
Contributed by Shannon O’Neill